New institutions takala isss 2012 final


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New institutions takala isss 2012 final

  1. 1. New Institutions for Innovation- Changing Practices for Development ISSS 2012 July 15th - 20th 2012, San Jose, California, USA INSCO - Innovation in Sourcing Competencies / Aalto University Minna Takala
  2. 2. Outline – Views to Innovation & Institutions – Emerging New Institutions for Innovation – Living Labs and Development Labs – FabLabs and Entrepreneurial Hubs – Examples – RLabs, Design Factory, Tanzict, Linna BikeShop – Observations and steps forward
  3. 3. Views to Innovation * Novelty * ValueSchumpeter 1934:1) The introduction of a new good —that is one with whichconsumers are not yet familiar—or of a new quality of a good.2) The introduction of a new method of production, which need byno means be founded upon a discovery scientifically new, and canalso exist in a new way of handling a commodity commercially.3) The opening of a new market, that is a market into which theparticular branch of manufacture of the country in question has notpreviously entered, whether or not this market has existed before.4) The conquest of a new source of supply of raw materials or half-manufactured goods, again irrespective of whether this sourcealready exists or whether it has first to be created.5) The carrying out of the new organization of any industry, like thecreation of a monopoly position (for example through trustification)or the breaking up of a monopoly position.OECD, Oslo Manual 1995:Technological product and process (TPP) innovations compriseimplemented technologically new products and processes andsignificant technological improvements in products and processes.A TPP innovation has been implemented if it has been introducedon the market (product innovation) or used within a productionprocess (process innovation). TPP innovations involve a series ofscientific, technological, organisational, financial and commercialactivities. The TPP innovating firm is one that has implementedtechnologically new or significantly technologically improvedproducts or processes during the period under review. ….many innovation definitions…
  4. 4. Definitions ... Systemic Innovation - ” An innovation whose benefits can be realized only in conjunctionwith related complementary innovations” Chesbrough and Teece (1996) … requires coordination throughout the system in order to realize the gains from innovations. … requires significant adjustment of parts in the business system they are embedded in. Teece (1996) Institution - “A complex of positions, roles, norms and values lodged in particular types of social structures and organizing relatively stable patterns of human activity with respect to fundamental problems in producing life-sustaining resources, in reproducing individuals, and in sustaining viable societal structures within a given environment.” Turner (1997)
  5. 5. New emerging institutionsfor innovation Living Labs - Focus on people Local / regional Labs Thematic Labs Entrepreneurial Hubs Community Labs - Focus on start-ups Development Labs Hub Network - Focus on Innovation Venture Garages Mobile App Labs Fab Labs Hackerspaces
  6. 6. Global Network of Living LabsPlace Labin MIT 2004Over 300LivingLabsglobally+ 50 underdevelopment
  7. 7. Global Network of FABLABsStartedin MIT 2002~ 100 FabLabsglobally+ 30 underdevelopment
  8. 8. Global HUB NetworkStartedin London 2005+ 25 Hubsglobally+ 50 underdevelopment+ 4000members Source:
  9. 9. HUBs in Africa Technology hubs Business incubators University tech labs Hackerspaces
  10. 10. 1 Spatial change 2 Temporal change Images 3 Relational change 4 Personal changeof Change 5 Value change 6 Emotional change 7 Conscious, unconscious & subconscious change 8 Certain / uncertain, clear / vague change 9 Real / unreal change 10 Public / private change Source: Boulding (1956)
  11. 11. RLABS – Reconstructed Living Lab
  12. 12. DesignPrinciple 1 or 2
  13. 13. Active use of social media
  14. 14. Vickers’s Appreciative System… the flux of events and ideas ... … desired relationships... … actions ... Readiness to See - Reality Judgment based on facts (true or false) Readiness to Value - Value Judgment based on values Readiness to Act
  15. 15. Linnan Pyöräverstas – Linna BikeShopas a Bicycle Living Lab
  16. 16. Observations and steps forward New institution for innovation are emerging globally, by local communities collaborating both locally and globally with various stakeholders – universities, firms, NGO’s etc. Usually organized by Design Principle 2 - democratic, voluntary and flexible principles, enabling fast development patterns Level of openness varies – open for members, open for all Active use of social media for organizing practicalities, for learning and sharing New institutions provide interesting and meaningful research topics and themes on social systems for action research projects
  17. 17. Minna Takala - Twitter/@MinLii & @INSCOproject & @LinnaBikeShopSlideShare/MinLii, Delicious/MinLii, SecondLife/ MinLii Hanson